Investment CEO sees gold standard return

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WESTPORT, Conn., Aug. 31 (UPI) -- Peter Schiff, vocal critic of the U.S. Federal Reserve System, said he anticipates a currency crisis and a U.S. return to the gold standard within two years.

The chief executive of the global investment firm Euro Pacific Capital said an immediate need to peg the value of a dollar to gold is needed since the economy is caught in a "phony recovery" in an interview with the British newspaper The Daily Telegraph.

"Eventually we will be back on the gold standard. We are heading for a currency crisis and the only way we are going to stop it is by putting real value back into the paper dollar. So we have to tie it to gold," Schiff said.

Schiff unsuccessfully ran as a 2010 Republican Party candidate for a U.S. Senate seat in Connecticut.

President Nixon broke the link between the dollar and gold during the 1971 oil crisis, but talk of the gold standard has returned to mainstream politics, with a "gold commission" proposal a part of Republican Party policy, the newspaper noted.